Lockheed Martin Corporation 2014 Outlook Hinges on Budget Deal (LMT)

The Maryland-based aerospace and defense manufacturer, Lockheed Martin (LMT), announced on Monday that it may have to revise its outlook for the year ahead depending on whether or not Congress passes the proposed two-year budget deal.
Marillyn Hewson, the company’s CEO, is hopeful that the U.S. Senate will approve the proposed agreement that passed through the House of Representatives last week. The proposed budget deal would call for roughly half of the $52 billion in automatic spending cuts facing the Pentagon in 2014. Hewson went on to state ”We had factored sequestration in, so now that we have more input … assuming that the budget gets approved, we’ll have an opportunity to revisit what our outlook is.”

Shareholders can expect for any revisions in the company’s guidance to be issued during the next earnings call on January 23rd, 2014.

If the budget deal passes, Lockheed Martin will most likely revise upwards its outlook to reflect the higher defense budget that the U.S. government will have to spare. Lockheed Martin shares inched higher to kick off the week, gaining 0.73% as the closing bell rang. The stock is up nearly 52% year-to-date.